3.8% Real Estate Tax – Fact or Myth?
Posted: January 26, 2012 Filed under: Sellers | Tags: health care bill, health legislation, help-u-sell, income taxpayers, national association of realtors, real estate, real estate transactions, sonora, tax filing status, tuolumne, tuolumne county Leave a comment »
Wow- it seems that every few months an email chain resurfaces inaccurately stating that President Obama’s health care bill created a “real estate tax” of 3.8% and that this tax will affect all real estate transactions.
Here are the facts:
Beginning January 1, 2013 a new 3.8 percent tax on some investment income will take effect. Not all investment income taxed will be real estate related and not all real estate transactions will be taxed.
To clear up the confusion the National Association of Realtors® has put together a great Q&A. Below is an excerpt. It you would like a copy of the complete Q&A and/or a copy of their brochure “The 3.8% Tax – Real Estate Scenarios & Examples” let me know. I’d be happy to email them to you.
Q-1: Who will be subject to the new taxes imposed in the health legislation?
A: A new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. Another 0.9% tax will apply to the “earned” income of many of these same individuals. Both levies are referred to as “Medicare” taxes. (For a description of the new 0.9% tax, see separate Q&A entitled “NEW TAX ON EARNED INCOME: WAGES, SALARIES AND COMMISSIONS.”)
Q-2: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)
Q-5: What is “unearned” net investment income?
A: Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business.
Q-9: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply? A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.
Mortgage Rates Drop To Record Low
Posted: January 12, 2012 Filed under: Buyers, Help-U-Sell | Tags: current market value, fixed mortgage rates, help-u-sell, low interest rates, monthly mortgage payments, owning a home, real estate, sonora, tuolumne, tuolumne county Leave a comment »According to this article on msn.com today, fixed mortgage rates fell to a new record low of 3.89 percent. Low interest rates coupled with low prices have made homes very affordable here in Tuolumne County.
When interest rates go back up, so will the cost of owning a home. The graph below shows exactly what a difference interest rates make in monthly mortgage payments.
HAFA, HAMP, HARP, HARP 2.0 … HELP!*
Posted: January 10, 2012 Filed under: Help-U-Sell, Sellers, Short Sales | Tags: current market value, deed in lieu of foreclosure, financial challenges, help-u-sell, real estate, relocation assistance, short sales, sonora, tuolumne, tuolumne county Leave a comment »Staying on top of the string of programs created to help homeowners caught up in the perfect storm of a high unemployment, rampant underemployment and declining home values, can be confusing to say the least. Here’s a brief overview of the acronyms spawned by the foreclosure crisis:
HAFA—The Home Affordable Foreclosure Alternatives program was designed to help homeowners to avoid the negative effects of foreclosure by establishing incentives for completing a short sale or a deed-in-lieu of foreclosure. In a short sale, the loan servicer accepts a loan payoff amount from an underwater borrower that is less than the amount actually owed on the first mortgage. With a deed-in-lieu of foreclosure, the borrower transfers ownership of the property to the loan servicer. HAFA provides for $3,000 in relocation assistance after a successful short sale or deed-in-lieu.
HAMP—The Home Affordable Modification Program was designed to help homeowners who are no longer able to make mortgage payments on time due to decreased income or an increase in the monthly payment amount. HAMP reduces a homeowner’s monthly mortgage payment to 31 percent of gross income following a series of steps on the part of the mortgage servicer that can include a rate reduction, a term extension of up to 40 years, deferred principal payments and (possibly) a lowering of principle.
HARP—The Home Affordable Refinance Program enables homeowners whose mortgages are backed by Fannie Mae or Freddie Mac and who owe more than their home it’s worth, to refinance and take advantage of today’s historically low interest rates. Originally, HARP was only available to homeowners whose first mortgage did not exceed 125 percent of the current market value of their home.
HARP 2.0—Dec. 1, 2011, the 125 percent loan-to-value ratio was eliminated, enabling eligible borrowers to refinance under HARP regardless of how far underwater they are on their mortgage.
If you are experiencing financial challenges that have made your mortgage payment unmanageable, you may well be surprised at how much help is available. The kind of help depends on a number of factors depending on your lender, the amount owed on your mortgage, your current payment status, and a range of other factors. The most important fact for financially distressed homeowners to keep in mind: the sooner help is sought, the better.
*an excerpt from the CDPE January Report, Tipping the Scales Towards Foreclosure?. For a copy of the full report visit my web-site http://www.sierrashortsales.com or give me a call at 209-536-3000.
Tuolumne County Real Estate Stats – 2011
Posted: January 3, 2012 Filed under: Buyers, Help-U-Sell, Sellers, Short Sales | Tags: help-u-sell, real estate, sonora, tuolumne, tuolumne county Leave a comment » 
The pattern of increased sales and decreased pricing in Tuolumne County Residential Sales continued throughout 2011 creating both challenges and opportunities. The decreased pricing combined with record low interest rates that dipped below 4% lowered the cost of homeownership to a level that has been called historically affordable.
|
Sales Comparison |
2011 |
2010 |
% Change |
|
Median sales price |
$160,000 |
$200,000 |
-20% |
|
Average sales price |
$186,729 |
$221,988 |
-16% |
|
Total sales |
784 |
625 |
+25% |
|
Private sales |
384 (49%) |
312 (50%) |
+23% |
|
REO sales |
304 (39%) |
242 (39%) |
+26% |
|
Short sales |
96 (12%) |
71 (11%) |
+35% |
|
Sales @ $200k and below |
530 (68%) |
318 (51%) |
+67% |
|
Sales @ $175k and below |
453 (58%) |
246 (39%) |
+84% |
|
High price |
$900,000 |
$900,000 |
0% |
|
Low price |
$15,000 |
$20,000 |
-25% |
|
Average Price Sq. Ft. |
$111 |
$129 |
-14% |
Source of Data: Tuolumne County MLS
TUOLUMNE
Posted: December 1, 2011 Filed under: Help-U-Sell, Lifestyle, Out and About, Uncategorized | Tags: help-u-sell, lifestyle, real estate, sonora, tuolumne, tuolumne county 3 Comments »
I was on the weekly Help-U-Sell Broker Round Table call yesterday. These calls are great. We talk about the latest in our industry and get a chance to exchange ideas. I always walk away with something new and interesting to ponder.
Yesterday, I walked away a little embarrassed. You see, I was talking about this blog when one of the brokers asked me what “Tuolumne” means. Having no idea what-so-ever, I was at a complete loss. How could this be? I grew up coming to Tuolumne County (Sonora and Twain Harte) on a regular basis since the age of 4 and I have sold real estate here now for over 6 years. Geez- time to make this right.
So here it is – straight from Wikipedia:
The name Tuolumne is of Native American origin and has been given different meanings, such as Many Stone Houses, The Land of Mountain Lions and, Straight Up Steep, the latter an interpretation of William Fuller, a native Chief. Mariano Vallejo, in his report to the first California State Legislature, said that the word is “a corruption of the Indian word talmalamne which signifies ‘cluster of stone wigwams.’” The name may mean “people who dwell in stone houses,” i.e., in caves.
Going Against the Grain – The Help-U-Sell Way
Posted: November 27, 2011 Filed under: Buyers, Help-U-Sell, Lifestyle, Sellers | Tags: help-u-sell, lifestyle, real estate, sonora, tuolumne 2 Comments »
I shamelessly stole this picture from James Dingman because it reminded me of a card I bought in my early 20s that resonated with me. There were 100s of penguins standing on the ice with one standing higher than the others boldly declaring, “I’ve just got to be me.” It’s not that I would characterize myself as a rebel. I’m too quiet for that. But I have always been an independent thinker who likes to chart her own course. I like to read and contemplate, research and listen. Then, move forward- my way. Sometimes my way is with the grain. Sometimes it is not.
As it relates to real estate two things that “went with the grain” didn’t set right with me: Commissions and Hoarding Information. On my path to find a better way I came across Help-U-Sell. Here was a group of independent thinkers who felt the same as me. With their Set-Fee pricing and philosophy of “Information without Obligation” I found the perfect fit.
Commissions: It just seemed to me that charging more money to the person who sold their home for $300,000 but received the exact same service as the person who sold their home for $200,000 was akin to charging the guy driving a BMW more for his carwash than the guy driving a Toyota Corolla. Help-U-Sell’s set fee for services rendered, in contrast, is fair and logical.
Hoarding Information: You know what I mean…withholding addresses or key information just to get a phone call. In essence, holding information hostage just to get a lead. In today’s mobile world where we literally have oceans of information at our fingertips anytime, any place, this is like trying to fence the sea. Fruitless and foolish. At Help-U-Sell, we want you to call because you are interested in our professional services, not because we deliberately withheld the address or square footage of a property. (I attended an education session this year that actually recommended w/holding addresses from Craigslist so as to get more leads – I believe this is an insult to one’s intelligence and so out of sync with today’s world)
At Help-U-Sell we will continue to proudly go against the grain. As others try to build a fence, we will continue to build a better boat and chart our own course. As James Dingman said-
It’s good to be Help-U-Sell.
TASTY TUESDAY – NUTS FOR BUTTERNUT
Posted: November 1, 2011 Filed under: Good Eats & Drinks, Lifestyle | Tags: good eats & drinks, help-u-sell, lifestyle, real estate, sonora, tuolumne, tuolumne county Leave a comment »
I love butternut squash and, for me, nothing says fall quite like Butternut Squash Soup. There are so many ways it can be prepared. Adding leeks and pears give the soup a subtly complex flavor while adding coconut milk and curry powder make it warmly exotic.
This Sunday I was craving Butternut Squash, simple and pure, and so I made a pretty straightforward batch of soup. Easy, simple and delish.
2 Butternut Squash, chopped (I had 2 from a friend’s garden in East. Sonora. Thanks Robin P.!)
1 Lg. Onion, diced
Olive Oil
Water
Salt & Pepper
Home Made Croutons (made from Dad’s homemade wheat bread. Thanks Dad!)
Parmesano Reggiano
Sautee onion in olive oil until it just starts to caramelize. Add Butternut Squash, salt & more olive oil. Continue sautéing until squash starts to soften. Cover with water and bring to a boil. Cook until squash is easy to smash with a fork. Puree soup in a blender in batches using as much liquid needed to create the consistency you like. Pour through a sieve to make it extra silky. Adjust salt and pepper to taste.
Top with home made croutons and parmesano reggiano.
For a more Rustic Version: Set some of the squash aside in a small dice and while the rest of the squash cooking, lightly coat in olive oil, salt & pepper. Roast in the oven until it is nice and browned. Do not pour the soup through a sieve after it is pureed. Add the roasted squash to the pureed soup.
We Did the Work – Joan Saved the Money
Posted: October 9, 2011 Filed under: Help-U-Sell, Sellers Leave a comment »Help-U-Sell does exactly what the name implies especially if you have Robin holding your hand. She made long distance transactions zip right along. She has my personal recommendation. joanhenderson
I recently received this testimonial from Joan. I sold her home in Sonora last month and I am sharing it for 2 reasons. First of all, it feels good to receive such kind words from a client. Secondly, I’m sharing it because she makes the point that it was a “long distance transaction” as she had already relocated out of the area when I listed her home.
You see, I have heard it said that Help-U-Sell offers limited services and therefore is not a good fit if the Seller is unable or unwilling to take on much of the work in the transaction. This could not be farther from the truth and so I thought with Joan’s testimonial it couldn’t be a better time to hi-light the fact that we are absolutely a Full Service Brokerage.
One more time because I love the way it sounds- Help-U-Sell is a Full Service Brokerage. We offer the exact same services that traditional real estate brokerages offer. The difference is in how we price and package our services. We offer a menu of services and charge a set fee based on the services utilized and the way in which a home sells.
We don’t believe that “one size fits all”. We believe that our clients are unique individuals with unique needs. We consult with our clients; listen to their needs, their goals, their dreams. Then, we put together a package that works for their specific situation. The package may be as basic as paperwork and escrow management for a For Sale by Owner transaction or include the full array of services to include staging, showings and open houses. Some of our clients want a very “hands on” approach and choose to be very involved and others choose minimal involvement.
We believe it is a logical approach to doing business. The icing on the cake for our clients is that, most often, our set fee saves our clients money. Joan, for example, saved over $3,000 selling with Help-U-Sell.
There was no sacrifice in service and she saved over $3,000. What would you do with an extra $3,000? If you’d like more information on how Help-U-Sell works give me a call, 209-536-3000.
Robin Rowland – Certified Distressed Property Expert® (CDPE)
Posted: September 5, 2011 Filed under: Sellers, Short Sales Leave a comment »I am very excited to announce that I have earned the Certified Distressed Property Expert® (CDPE) designation. As many people know, I am passionate about helping families in need know that there are alternatives to foreclsoure and that they are not alone. It is my priortiy to educate my clients about all of their options so that they can make the best choice for their specific situation. The CDPE designation is one of the industry’s most prestigious designations and adds a layer of education and resources to help me better serve my clients.
What is a CDPE? (taken from www.cdpe.com)
A Certified Distressed Property Expert® (CDPE) has a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. CDPEs can provide solutions, specifically short sales, for homeowners facing market hardships.
Homeowners regularly proceed without guidance of any kind through the often financially and emotionally devastating prospect of foreclosure. Speaking with a well-informed, licensed real estate professional is the best course of action for a homeowner in distress. Through comprehensive training and experience, CDPEs have the tools to help homeowners find the best solutions for their unique situations and to avoid foreclosure through the efficient execution of a short sale.
Living through financial difficulties poses a challenge for any family, so why make the process of finding a qualified real estate professional difficult too? Select an agent with the CDPE Designation to ensure you have a trained professional to address your specific needs.
CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
What’s the Tuolumne County Real Estate Market Doing?
Posted: July 18, 2011 Filed under: Buyers, Sellers, Short Sales Leave a comment »The year over year trend for Residential Home Sales in Tuolumne County continues as sales increase and prices decline.
| 2011 Thru Q-2 | 2010 Thru Q-2 | % Change | |
| Quantity Sold |
340 |
274 |
+24% |
| Average Sales Price |
$189,820 |
$219,428 |
-13% |
| Median |
$162,000 |
$200,000 |
-19% |
Month over month, so far this year, there is no clear pattern in regards to median price. Time will tell.
| 2011- Median Price | 2010- Median Price | |
| January |
$150,000 |
$202,000 |
| February |
$180,000 |
$189,000 |
| March |
$156,000 |
$191,500 |
| April |
$166,500 |
$222,500 |
| May |
$170,000 |
$210,500 |
| June |
$166,000 |
$190,000 |
The charts below show the difference between the percentage of Short Sales, REOs (bank owned homes) and Privately owned homes that are not “upside down” that are listed for sale as compared to what is actually selling. REO listings account for only 11% of the inventory but 42% of the actual sales. One thing is clear, with 77% of the listing inventory but only 45% of the sales, it is so important for Private sellers to price their homes correctly in order to compete with the distress sales.
ACTIVE LISTINGS
| Number of Listings | Percentage of Total | |
| Total Listings |
680 |
100% |
| Private Listings |
521 |
77% |
| REO Listings |
75 |
11% |
| Short Sale Listings |
84 |
12% |
SOLD LISTINGS THROUGH Q-2, 2011
| Number of Sales | Percentage of Total | |
| Total Sales |
340 |
100% |
| Private Sales |
152 |
45% |
| REO Sales |
144 |
42% |
| Short Sale Sales |
44 |
13% |
